the impact of national culture and organizational culture
TRANSCRIPT
The Impact of National Culture and Organizational Culture on Job Satisfaction: An Empirical Study of
Manufacturing Sector Employees of Sri Lanka.
By S.W.KT.I. Samaranayake GS/MC/1 853/2001
A Dissertation Submitted to The University of Sri Jayawardanapura in Partial Fulfillment of The Requirements for The Degree of Master
of Science in Management
M.Sc (Management) Degree Program Faculty Of Graduate Studies
University Of Sri Jayawardanapura Sri Lanka
January 2006 40
13 AU2UU
DOI: 10.31357/fmscmst.2006.00287
To my parents who gave me love of life, To my wife who gave me life of love, To Chameli & Chanith who make it
Fruit full and happy
I hereby recommended that the thesis prepared under my supervision by Samaranayake Weerasingha Kankanamge Ihanupa I ndraj ith Sarnaranayake
Entitled
The Impact of national Culture and Organizational Culture on Job Satisfaction: An Empirical Study on
manufacturing Sector Employees Of Sri Lanka
Be accepted in partial fulfillment of the requirement for the degree of Master of Science in Management
. akumara Thesis Advisor
Approved By the Examining Committee:-
.......... r7
M.Sc.(Managcmcnt) Degree Program Faculty of Graduate Studies
University of Sri Jayawardanepura Sri Lanka
January 2006
Acknowledgement
At this very out set I would take this opportunity to thank all the lecturers at the
Faculty of Graduate Studies who conducted the Lectures for us during the M.Sc. in
Management Degree program. Other than to their valiant efforts and dedication
nothing else will bring us this far. The quality of the lectures as well as the caLise
materials gave us a very good insight to the subject and made think like true
academics.
Very special gratitude goes to Dr Anil Chandrakumar who supervise me though out
the research and dedicate his time and efforts so much. He some times went out ol the
way and helped me during my lapses. For the first time in my academic carrier I did a
research and without his valuable contributions the research would not have been a
success.
The work of a cause Coordinator is a tough and most of the cases goes thankless. As
once Prof H.H.D.N.P. Opatha iterate ' Coordinator has immense responsibilities with
very little Authority". But Sir, Madam, your efforts with LIS during a very bad and
strenuous period for the Sri Jayawardanapura University was tremendous. I must give
my special thanks to Prof. H.H.D.N.P.Opatha, Dr. Badra Arachchige, and Dr. Sumada
Amarathunga, for your dedication and efforts to make this program a success.
The staff of the Sri Jayawrdana Pura University, and the Librarian and the Staff of the
Sri Jayawardana Pura University Library, for their help and support rendered to us
during the academic program.
The toughest task during the research was to distribute the questionnaires and get
them collected from the respondents. For this, the following friends and colleagues,
gave me their fullest support, Mr. Anton Silva- Manager Human Resources Singer
Industries, Mr. T Thilakurnar- Manager Human Resources BATA Shoe Company.
Lakmal . Human Resources Executive Regnis Lanka Ltd, Mr. Samitha Perera-
Manager Employee Relations Ceylon Tobacco, Mr. Chinthana Fernando, MAS
Holdings, my brother Waruna, Highland Milk Food Factory, thank you all for the
time and effort you spent on this work.
To my parents for their help given to me in many ways, my special thanks goes to
them also.
Last but not the least to my wife and the two children, Chameli and Chanith, I must
thank them from the deep of my heart for tolerating me during the past few months. I
missed so many responsibilities, I most of your time otherwise would have spent with
you as you all expected me to do so, and sorry for the missed bed time stories which
you missed when I got late due to the work I had with this decoration. Thank You
again for you for your patients.
III
Abstract
As it will be described in the Literature Review Culture is like water to fish. In
absence of the valued culture only it began to realize the importance of that. This it
self explain how important it is to understand the cultural differences, diversity, and
the complexity of that. When it comes to understand the mind set of employees it is
very important to know what they value most. For example in individualistic cultures
personal development and career opportunities will do wonders where as those will go
un appreciated in highly collectivist cultures. So when motivating, building groups
and forming teams it is essential to know and understand the how people think and
behave under different circumstances. Organizational culture to be effective there
should be a fit between the thinking of people in the organization and the
organizational Culture.
The theories on motivating people and other management tools incorporated with Job
Satisfaction were developed in west especially in USA and these theories were
practiced exceptionally well and the yields were phenomenal in those cultures. So by
just seeing the success of those corporations management practitioners in the east
have been adopting the same theories to their organizations too but the results have
not been the same for them. The reason for this been that these theories as it is, is
effective only in those cultures because the way and what people value, have been the
bases for those theories. The basic issue behind the inspiration of the research was the
ineffectiveness of these methods management parishioners practice and management
gurus always advice them to practice in similar situations.
The only difference that made sense for possible miss fit in the expected and actual
results through the implementation of the theories proved very effective in west was
the Cultural Difference. So the objectives for the study was set based on three critical
factors. One to have an understanding of the National Culture, Second to have an
understanding of the factors that people will admire most out of common job
satisfiers, third to have an understanding of the Organizational Culture that would
inspire people to work hard. So in brief the following objectives were set for the
study,
ILI
To measure the national culture as perceived by employees for its prominent
features
To measure the Organizational culture as perceived by employees
To measure the Job Satisfaction of the employees
To measure the effect of other identified factors on Job Satisfaction
To Measure the effect of Organizational Culture on the Factors Indentified
related to job Satisfaction
To measure the relationship of national culture as perceived by employees,
Organizational culture as perceived with the Job Satisfaction of the employees
as individual variables.
To measure the change in the effect between Organizational culture as
perceived by employees and Job Satisfaction of the employees in the presence
of the national culture as perceived by employees as a moderator variable.
In order to obtain the data to achieve the said objectives several manLLfacturing
organizations was selected and opted the survey method with standard questionnaire
was distribLited to a selected sample of employees of those factories.
For data analysis SPSS 12 was used and Pearson's correlation and R2 , Regression
analysis, Beta value analysis, F value analysis, and paired sample T test were the
basic statistical tools used.
The results of the study reveals that people in the manufacturing sector in Sri Lanka
are. Power distance not preferred, Col lectivistic, Feni i nine, and uncertainty avoidance
preferred. In addition to these people are more satisfied with the quality of
supervision, Workiiig Conditions, and Promotion Opportunities, than pay and equity
related rewards. And it is interesting, that they prefer if the organizational culture is
geared in such a way that it can communicate to the employees what is happening
inside the organization. Or in other words if the culture is communicative. And also,
they prefer team work, and people orientation, but does not like, action , result and
planning orientation which need to be change in order to face the competition
expecting from other countries.
There are implications such as people are uncertainty avoidance preferred so they will
be very reluctant towards changes, and the time spent on planning has shown very
insignificant, or not planning at all. These factors will have so many unfavorable
implications over the progress of the organizations.
V
Table of Contents
Title Page No:
Certification Acknowledgement Abstract IV Table of Contents VI List of Abbreviations IX List of Tables X List of Charts XII Chapter One- Introduction 1 .1 Introduction I 1.2 Research Question 5 1.3 Objectives 5
Chapter 02- Literature Review 2.1 Introduction 6 2.2 National Culture 6
2.2.1 Power Distance 7 2.2.2 Individualism/Collectivism 8 2.2.3 Masculinity/ Femininity 9 2.2.4 Uncertainty Avoidance 9
2.3 Organizational Culture 14 2.3.1 Culture-Value 15 2.3.2 Culture-Value- Norm 15 2.3.3 Corporate Culture Scale 16
2.3.3.1 Planning Orientation 16 2.3.3.2 Innovation 16 2.3.3 .3.Aggressiveness/ Action Orientation 16 2.3.3.4 People Orientation 16 2.3.3.5 Team Orientation 16 2,3.3.6 Communication 17 2.3.3.7 Result orientation 17
2.3.4 Six Dimensions of Organizational Culture 17 2.4 Job Satisfaction 20
2.4.1 Is job satisfaction Important 20 2.4.2 Job Satisfaction Defined 22 2.4.3 Related Theories and Research Work 23
2.4.3.1 Expectancy Theory 24 2.4.3.2.Tw Factor Theory 24 2.4.3.3 Equity theory 24
2.4.4 Related Research 25
Chapter 03- Theoretical Framework 3.1 National Culture 27 3.2 model for Measure Job Satisfaction 28
3.2.1 Job Satisfaction Conceptualized 28
3.3 Organizational Culture 29
Chapter 04- Research Methodology and Significance Of the Study 4.1 Research Method 34
4.1 .1 Sampling Method 34 4.1 .2 Questionnaire Structure 36 4.1.3 Sample 37 4.1.4 Data Analyzing and Presentation 38
4.2 Significant of the Study 38
Chapter 05- Data Analysis 5.1 Order Of Analysis 41 5.2 Factor Analysis 42 5.3 Reliability test for the Data Collected 43 5.4 Descriptive Statistics 43 5.5 Bivariate Analysis 44 5.6 Hypothesis Testing 45
5.6.1 Job Satisfaction and Pay 46 5.6.2 Job Satisfaction and Promotion Opportunities 46 5.6.3 Job satisfaction and Supervision 46 5.6.4 Job satisfaction and Supportive Working Conditions 47 5.6.5 Job Satisfaction and Co-Worker 47 5,6.6 Job Satisfaction and Work Stress 47
5.7 Organization Culture and Job Satisfaction 49 5.8 National Culture and Job Satisfaction 50 5.9 Further Analysis 52
Chapter 06- Discussion 6.1 The National Culture as perceived by Respondents 54 6.2 Job Satisfaction- Related Factors 54 6.3 Organizational Culture and Job Satisfaction 55 6.4 National Culture and Job Satisfaction 55 6.5 National Culture, Organizational Culture and JS 56 6.6 Research Objectives 56
6.6.1 Objective One 57 6.6.2 Objective Two 57 6.6.2 Objective Three 58
Chapter 07 —Conclusion 7.1 Introduction 59 7.2 Conclusion 59 7.3 Limitation 60 7.4 Proposals For further Studies 60
VII
Appendix Page
Appendix 0 1 - Data Analysis Tables Charts xxii Exhibits xxxv
Appendix 02 - Questionnaire National Culture - English xli Organizational Culture - English xliii Job Satisfaction - English xlvi
Appendix 03 - References
LAH
List of Abbreviation
OCP Organizational Culture Profile NCP National Culture Profile JS Job Satisfaction Pro:Op Promotion Opportunities Supp: Supervision Sup:W:C Supportive Working Conditions Co:W Co Worker Attitude W:S Work Stress Comm: Communication Re:O Result Orientation P1:0 Planning Orientation Act:0 Action Orientation T:0 Team Orient Pe:0 People Orientation
IX
List Of Tables Table 01 Factor Analysis for Organization Culture Profile Table 02 Factor analysis for National Culture Profile Table 03 Factor analysis for Job Satisfaction Table 04 Summary of Factor Analysis Table 4.1 Comparison of Population and Sample Properties Table 4.2 Distribution of the Sample Among the Organization Studied Table 4.3 Demographic data Table 4.4 Questionnaire Structure Table 05 Chronbach's Alpha For NCP factors Table 06 Chronbach's Alpha For OCP factors Table 07 Chronbach's Alpha For JS Related factors Table 08 Descriptive Statistics OCP Factors Table 09 Descriptive Statistics NCP Factors Table 10 Descriptive Statistics JS Related Factors Table 11 Summary of Pearson's Correlation —JS Vs Related Factors Table 12 NCP Factors Vs OCP Factors Table 13 NCP Factors Vs JS Related Factors Table 14 OCP Factors Vs JS Related Factors Table 15 Job Satisfaction Vs JS Related Factors Table 16 a,b,& c Linear Regression Out Put for .IS Vs OCP Table 17 a,b,& c Linear Regression Out Put for JS Vs NCP Table 18 a,b,& c Linear Regression Out Put for JS Vs OCP & NCP Table 20 OCP Factors Vs JS Regression Analysis Summary Table 21 Pearson's Correlation Job Satisfaction Vs OCP Factors Table 22 Relationship between JS and JS related factors with and
without OCP Factors Table 23 JS Vs Most Preferred and Least Preferred National
Cultural Factors Table 24 Example of The effect of National Culture with the
OCP Factors and JS Table 25 a&b Moderator Effect Table 26 Paired Sample T Test Table 27 a,b, & c Job Satisfaction and Factors Effecting JS Directly Table 28 ab,& c The Total Factors Effecting JS as a one model Table 29 a,b,& c Relationship Between Pay and JS in the presence
of OCP Factors Table 30 a, h&c Relationship Between Promotion Opportunities
Vs JS in the presence of OCP Factors Table 31 a,b,& c Relationship Between Supervision Vs JS in the
presence of OCP Factors Table 32 a,b&c Relationship Between Supportive Working
Condition Vs JS in the presence of OCP Factors Table 33 a,b,& c Relationship Between Co Worker Vs JS in the
presence of OCP Factors Table 34 a,b& c Relationship Between Work Stress Vs JS in the
presence of OCP Factors Table 35 Job Satisfaction Vs NCP Factors Table 36 Job Satisfaction Vs OCP Factors Table 37 National Culture Organizational Culture and JS
46 40 40 41 42
11
47 47 48 48
xviii
01
List Of Charts Page
Chart 01 Scree Plot OCP xxii Chart 02 Scree Plot NCP xxii Chart 03 Scree Plot JS xxiii
Chart 04 Histogram xxiv
xl
Chapter 01
1.0 Organization of the Report
The first chapter of the report will focus on the Introduction to the research,
introduction of the Research Problem, the Objectives. Scope and Limitations of the
study, Significance and the Recommendation for the future studies. The chapter two
focused on the Literature Review and here literature related to National culture,
Organizational Culture and Job Satisfaction are reviewed, and Hypothesis were
developed and listed too. The Chapter three focused on the Theoretical Framework
where models of the study and the conceptualization of the research is done. Chapter
four Research Methodology and here the research strategy, sampling method, and the
sample is listed and described. Chapter Five Data Analysis, where the individual
objectives are analyzed and listed with the use of SPSS 12. Chapter Six dealt with the
discussion where the Objectives, the literature review and the data analysis chapters
are interlinked and briefed. Conclusion is on chapter Seven.
1.1 Introduction
According to Mottaz (1985Mottaz and Potts. 1986) the majority of the literature
views job satisfaction as a function of work rewards and values. In this sense he
concludes work satisfaction represents a person-environment fit". Most early
research on work satisfaction, however, focuses the relationship between intrinsic or
extrinsic job rewards and satisfaction. This social psychological, or interactions,
model of work satisfaction tends to neglect the influence of organizational culture or
community context. An organization can be only as effective as its peopJe. This
aphorism is true for any firm which are characterized by continual and intense
Employee - employer- customer contact. Moreover, the dynamic interaction inherent
in these product or service encounters means that it exert a strong influence on all the
stakeholders perceptions of product service quality and their satisfaction with that.
(Bitner, Booms, &Tetreault, I 99O l-leskett. Jones, Lovernan, Sasser, & Schlesinger,
1994).
'fis1i only d'iscovers its neediforwater when it is no longer in it. Our own culture
is likc water to a fish. It sustains us. We live and 6reathe th rough it. What one
culture may regaras essential; a certain level of material wealth for eampCe, may
not be so vitalto other cultures"
Fons lroinpenaars- Riding The Waves Of Culture
1-lurnan beings learn how to behave. Unlike many living creatures that have not been
taught by their parents, not copied their elder brothers and sisters, or imitated the
adults, but instinct have guided them to do what they are doing. That's why honey
bees in Europe make their hive in a similar way to which their counterparts does in
Asia and Africa.
Culture is an important element of a society. Culture is defined as patterns of values,
ideas, and other symbolic-meaningful systems that shape an individual's behavior
(Kroeber & Parsons 1958). Hofstede (1980) argued that: "Culture is to the human
collectivity what personality is to an individual....] Culture determines the identity of a
human group in the same way as personality determines the identity of an individual."
Values, according to Hofstede (1980), are the building blocks of culture. Kluckhohn
(1951) defined value as a characteristic of a group that influences the selection from
available modes, means, and ends of action. Our mental programs, as such, are
affected by our values, which affect our choices (Hofstede 1980; Kluckhohn 1951).
Culture also has the potential to affect the formation of an institution (Singh 1999) or
Illailagement practice. Empirical research on the impacts of culture, however,
remained sparse until Hofstede (1980) created scales for uncertainty avoidance,
individualism, masculinity, and power distance as dimensions of culture (Kogut &
Singh 1988). Uncertainty avoidance is defined by the extent to which people in a
country prefer structured over unstructured situations (l-lofstede, 1993). In a society
with a high degree of uncertainty avoidance, inhabitants seek to reduce uncertainty
and unpredictability. Individualism involves the degree to which individuals
in a culture are expected to act independently of other members of the society. It
describes the relationship between an individual and the collectivity in society. In an
individualistic society, individuals are more concerned with their interest and the
interest of their immediate family rather than that of anyone else in society. In a
collectivist society, in contrast. the interest of all is given a higher priority than in an
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